Showing posts with label AFSI. Show all posts
Showing posts with label AFSI. Show all posts

Friday, April 29, 2011

Closed AFSI puts

Closed my June $17.50 puts on AFSI for $0.15.

After I sold these puts, I put in a buy-to-close order to sell as soon as I'd made 80% of my potential profits. This is my SOP when selling puts.

Remember, I sold these puts on January 20 for $0.90.
The term of the put was six months. Holding to expiration would have paid me 5.14%, or 0.86% per month. [ $0.90/$17.50 * 100 = 5.14% 5.14%/6 months = 0.86% per month ]
I bought the put back early, having made 80% of my potential profit. The effective term was four months. My profit was $0.75 or 4.29% total or 1.07% per month [ $0.90 - 0.15 = $0.75. $0.75/$17.5 *100 = 4.29% 4.29%/4 months = 1.07% per month ]

So by closing early, I made 0.21% per month more than I would if I had just held the out-of-the-money puts to expiration.

0.21% per month isn't much, but it's 2.52% annualized--more than my bank account is paying right now.

Friday, August 13, 2010

Sold EBIX, ORCL, AFSI

Today I sold EBIX for $17.57, ORCL for $22.64, and AFSI for $13.86. AFSI was sold on valuation; I'll buy again if it goes lower. EBIX was sold for a 10% loss; I think the current price increase (due to a great earnings report) will recede. I'll look to pick it up again at a lower price. ORCL was sold for a gain; I sold it due to management reliability concerns.